PLUTO NETWORK
Why is Plutos Network needed?
The Synthetic dominance is clearly the dominant reason why the Plutos Network is needed, because Pluto Network offers users synthetic issuance and trading services for a wide range of synthetic products which are sustainable, profitable, and disruptive to the traditional derivative market.
According to DeFiPulse, the TVL of DeFi derivatives is only $3.04B, compared to the TVL of $51.76B, it's very much clear that current the market of crypto derivatives is undervalued. Also, protocols of DeFi insurance such as NXM take a large part of it.
By our projection, the market of tokenized and crypto synthetics will grow in an exponential way, with an estimated 25-45% of TVL increase this year. Current platforms such as Synthetics are still small in terms of its proportion in the whole DeFi world. (Source DeFi pulse)
DeFi needs synthetics
Compared to the size of derivative market in traditional financial industry, there is huge potential of growth and long way of development for crypto derivatives. Tokenized financial products will offer better solutions which will make these assets more accessible, secured when transacting, propertied.
What are Synthetic Assets?
The term “synthetic Derivatives” refers to derivatives emulating their underlying assets (which could be a stock, a commodity, an index etc.), but at the same time changing essential characteristics like the methodology of it price calculation. The methodology applied to their price calculation is exactly what makes them complex products.
Just like a similar product, synthetic derivatives give traders the opportunities to speculate on price changes without the actual need to owning the traded financial instruments. They are contract-based, meaning you can trade a given number of contracts, and each one of them will correspond to a base amount of asset in question.
Traditional financing needs synthetics.
In comparison to the current synthetic issuance and trading platforms such as Synthetix, Auctus, they only support Ethereum network which has limitations such as high gas fee, low transaction, vulnerability during security breaches etc. By integrating leading Blockchains such as Polkadot, BSC and Sonala, Plutos Network will be able to offer users cross-chain synthetic assets issuance and trading services. With the continuous of crypto synthetics and the ecosystems of these Blockchains, Plutos Network will be benefited in the long-run for continuous growth.
The Plutos Network synthetic system mainnet lauch is just 1 day away from launch. It promises to be what the Cryptocurrency ecosystem needs. Plutos Network the DeFi with the Synthetic difference
John Joseph
official@plutosnetwork
